Okta vs Palo Alto Networks: Revenue, Profit and Business Model
Okta had $2.9B of annual revenue in FY2026 and $235M of net income. Palo Alto Networks had $11.5B of annual revenue in FY2026 and $307M of net income.
Latest financial snapshot
Okta
- Latest annual revenue
- $2.9B (FY2026)
- Net income
- $235M
- Net margin
- 8.1%
- Revenue growth
- +38.0% a year, FY2017–FY2026
Palo Alto Networks
- Latest annual revenue
- $11.5B (FY2026)
- Net income
- $307M
- Net margin
- 2.7%
- Revenue growth
- +23.2% a year, FY2017–FY2026
Financial summary
Okta
Okta crossed into GAAP profitability in fiscal 2025 ($28 million net income on $2.610 billion revenue) and expanded it in fiscal 2026: revenue rose 12% to $2.919 billion, GAAP operating income reached $149 million, net income $235 million and free cash flow $863 million (30% margin). Momentum continued in fiscal 2027. Q2 FY2027 (ended July 31, 2026) revenue grew 11% to $805 million, GAAP net income was $116 million, free cash flow $227 million, and remaining performance obligations rose 17% to $4.858 billion. Okta held $2.299 billion of cash and short-term investments after repaying the last $350 million of its 2026 convertible notes in cash, and it has been buying back stock. Okta, Inc. is a massive American cloud-based identity and access management company, commanding a market valuation typically exceeding $15 billion.
Palo Alto Networks
Revenue grew from $1.76 billion in fiscal 2017 to $11.48 billion in fiscal 2026 as the company moved from firewall boxes to subscriptions. GAAP profit has been uneven. The company lost money through fiscal 2022, then earned $440 million in fiscal 2023 and $2.58 billion in fiscal 2024 (a figure lifted by a one-time tax benefit). It earned $1.13 billion in fiscal 2025 and $307 million in fiscal 2026, when CyberArk and Chronosphere acquisition costs produced GAAP net losses of $177 million in Q3 and $282 million in Q4. Cash generation is stronger: fiscal 2026 adjusted free cash flow margin was 38.4%, and management targets 40% by fiscal 2028. Palo Alto Networks, Inc. is the absolute largest multinational cybersecurity company in the world, maintaining a massive market valuation generally exceeding $90 billion.
Revenue and profit by year
Okta
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $2.9B | $235M | 8.1% | +11.8% | Source |
| FY2025 | $2.6B | $28M | 1.1% | +15.3% | Source |
| FY2024 | $2.3B | -$355M | -15.7% | +21.8% | Source |
| FY2023 | $1.9B | -$815M | -43.9% | +42.9% | Source |
| FY2022 | $1.3B | -$848M | -65.2% | +55.7% | Source |
| FY2021 | $835M | -$266M | -31.9% | +42.5% | Source |
| FY2020 | $586.1M | -$208.9M | -35.6% | +46.8% | Source |
| FY2019 | $399.3M | -$125.5M | -31.4% | +55.6% | Source |
| FY2018 | $256.5M | -$109.8M | -42.8% | +59.5% | Source |
| FY2017 | $160.8M | -$75.1M | -46.7% | — | Source |
Palo Alto Networks
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $11.5B | $307M | 2.7% | +24.5% | Source |
| FY2025 | $9.2B | $1.1B | 12.3% | +14.9% | Source |
| FY2024 | $8B | $2.6B | 32.1% | +16.5% | Source |
| FY2023 | $6.9B | $439.7M | 6.4% | +25.3% | Source |
| FY2022 | $5.5B | -$267M | -4.9% | +29.3% | Source |
| FY2021 | $4.3B | -$498.9M | -11.7% | +24.9% | Source |
| FY2020 | $3.4B | -$267M | -7.8% | +17.5% | Source |
| FY2019 | $2.9B | -$81.9M | -2.8% | +27.6% | Source |
| FY2018 | $2.3B | -$122.2M | -5.4% | +29.0% | Source |
| FY2017 | $1.8B | -$203M | -11.5% | — | Source |
Where the revenue comes from
Okta
- Subscription~98%
$2.855 billion of fiscal 2026 revenue from workforce and customer identity subscriptions.
- Professional services and other~2%
About $64 million in fiscal 2026; Okta is shifting this work to partners.
Palo Alto Networks
- Subscriptions and SupportLargest
Recurring security subscriptions, support, SASE, cloud security, and Cortex products.
- Product RevenueMaterial
Physical and virtual firewall products and related hardware/software sales.
- ServicesEmbedded
Incident response, advisory, and other security services.
Business model and strategy
Okta
How it makes money
Okta makes money by selling term subscriptions to its cloud identity services. Workforce identity products such as Single Sign-On, Adaptive MFA, Universal Directory, Lifecycle Management, Okta Identity Governance and Privileged Access are generally priced per user per month and sold on annual or multi-year contracts.
Growth strategy
Okta's growth strategy has three parts: sell newer products (Okta Identity Governance, Privileged Access, Identity Threat Protection, Identity Security Posture Management) into its existing base; move up-market, where customers above $1 million in ACV grew more than 20% to over 600 by mid-2026;
Competitive advantage
Okta's main advantage is neutrality. It does not sell a cloud, an operating system or a productivity suite, so customers running AWS, Google Cloud, Microsoft and hundreds of SaaS tools can use one identity layer without favouring a single vendor. The Okta Integration Network offers more than 7,000 pre-built integrations, and identity systems are costly to replace once wired into HR, IT and security workflows.
Palo Alto Networks
How it makes money
Palo Alto Networks makes most of its money from recurring subscriptions and support, with the rest from firewall products. Customers buy hardware and virtual next-generation firewalls and then pay yearly for threat prevention, URL filtering, DNS security and SD-WAN services.
Growth strategy
Since early 2024, Palo Alto has pursued 'platformization'. It offers customers free or discounted periods so they can move off rival tools before their contracts expire, in exchange for long-term commitments to its platforms.
Competitive advantage
Palo Alto's edge is breadth combined with a large installed firewall base. Few vendors can sell network security, SASE, cloud security, SOC automation and identity security under one contract, and the PAN-OS policies that enterprises have built up over years make firewall replacement slow and risky. Telemetry from that base feeds Unit 42 threat research and the AI models in Cortex.
Questions about Okta vs Palo Alto Networks
Which company has higher revenue — Okta, Inc. or Palo Alto Networks, Inc.?
Okta, Inc. had $2.9B (FY2026), while Palo Alto Networks, Inc. had $11.5B (FY2026). By latest annual revenue, Palo Alto Networks, Inc. is the larger business, with Okta, Inc. showing a smaller revenue base.
What is the market cap of Okta, Inc. vs Palo Alto Networks, Inc.?
Okta, Inc.'s market capitalisation stands at $33.0B, while Palo Alto Networks, Inc.'s is $306.5B. Palo Alto Networks, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Okta, Inc..
How does revenue per employee compare for Okta, Inc. and Palo Alto Networks, Inc.?
Okta, Inc. has $459k / employee in revenue per employee, while Palo Alto Networks, Inc. has $714k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Okta, Inc. and Palo Alto Networks, Inc. make money?
Okta, Inc. and Palo Alto Networks, Inc. generate revenue in fundamentally different ways. Okta, Inc.: Okta makes money by selling term subscriptions to its cloud identity services. Palo Alto Networks, Inc.: Palo Alto Networks makes most of its money from recurring subscriptions and support, with the rest from firewall products.
Which company is valued higher relative to revenue — Okta, Inc. or Palo Alto Networks, Inc.?
On a price-to-sales (P/S) basis, Okta, Inc. trades at 11.3x P/S and Palo Alto Networks, Inc. at 26.7x P/S. Palo Alto Networks, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Okta, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Okta, Inc. bigger than Palo Alto Networks, Inc.?
By last reported revenue, Palo Alto Networks, Inc. ($11.5B (FY2026)) is the larger company compared to Okta, Inc. ($2.9B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Okta vs Palo Alto Networks overview